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Well that is the problem, the damage is done the institutions and businesses relocated or are relocating and everybody spend billions severing ties.
At this point the UK isn‘t a large and affluent trading partner any more. So why would you give a nobody anything special?
Also the EU is power centric and the UK embarrassed themselves worldwide. Why would you want somebody like that on your team?
You can just let them bleed out and talk about them rejoining the team when their pride is broken and they are lit. begging you to rejoin.
Yeah it's not like Britain rejoining tomorrow would make a sudden change in the UK's economic output, but it could at least stop it from continuing to deteriorate.
And while the UK GDP is surely on a downwards trend (at least comparatively) that ignores the fact that the UK is still the 6th largest economy in the world and is, i think, still larger than France. Obviously it'd be better for the EU to add a similarly sized country which is growing instead of slowing, but those don't exist. Turkey's GDP Is still 4x less than the UK.
Brexit has certainly helped EU cohesion, support for Finnexit or Deportugal has dropped significantly since 2016. However if by some fluke britain turns out to be a success in the next 10 years then it might reverse that trend. The EU can nip that in the bud by coming up with a Brentrance deal that isn't horribly punitive, because there are real policy and fiscal advantages to the EU in British membership.
I think the UK should accept consequences and deal with it.
The EU (including the UK at one time) became the powerhouse because of its Union.
When some countries seems to think they can do better and leave they weaken that Union. Without consequences countries would be leaving and rejoining the EU when parlaments change. And as an Economic Union you just cannot accept those members. It makes you look weak globally